Solgold Share Discussion Threads

[mknight] 16/4/2020 08:14

Ntbb

I feel good .

[arcadian] 16/4/2020 08:12

As we have seen many times the real buying power for this will come from across the pond later today.

[ntbb] 16/4/2020 08:05

All majors are fighting over this company

[lefrene] 16/4/2020 07:59

All doubts removed, it's a goer!

[ntbb] 16/4/2020 07:58

Mk how are feeling

[ntbb] 16/4/2020 07:57

Fantastic news

[jammytass] 16/4/2020 07:56

perhaps a few big buys today from big investors

[lowtrawler] 16/4/2020 07:52

May also spark an acquisition bid. Some of the big boys will want to control when and where the output is mined and not want this to be taken out of their hands. Will take them a week or two to respond.

[p winky] 16/4/2020 07:52

How soon before we see 46p again :)

[mknight] 16/4/2020 07:43

Told eveyone . Not easy to get back in at a cheaper price once you have sold .

[lowtrawler] 16/4/2020 07:40

Wow! How high will we go today?

[jammytass] 16/4/2020 07:24

whats no to like about a fully funded mine for 2 years

[yufff] 16/4/2020 07:22

Rock no roll time

[jammytass] 16/4/2020 07:21

production or take out all to play for

[jammytass] 16/4/2020 07:17

should be 25 percent up today
bids must be around the corner!!!!

[fsawatcher] 16/4/2020 07:15

boommmmmmmmmmmm! shaka boommmmmmmmmmmm

paper market need phiscal stuff nows so they gonna buy it in the ground and give it to vault in 2025

luv it

[markth126] 16/4/2020 07:10

In what way

[jammytass] 16/4/2020 07:08

The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to provide an update on Expressions of Interest ("EoI") received from leading commodity traders for the offtake of copper-gold-silver concentrate from the Company's flagship Alpala project in Ecuador.



Following the release of encouraging metallurgical test work results in October 2019, the Company began engaging with major global copper smelters and international commodity traders, to assess the interest and commercial value of Alpala's high copper, high precious metal and low deleterious content copper concentrate.



Subject to favourable outcomes in development funding and necessary permits, production of gold rich copper concentrate is anticipated to commence in late 2025, as outlined in the Preliminary Economic Assessment ("PEA"), filed on 19 November 2019. In the first 15 years of production, based on the 50Mtpa fast ramp up scenario, the mine is expected to produce an average of 810ktpa of concentrate with grades of 28.2% copper, 22.1g/t gold and 65.7g/t silver. These grades would result in production of contained metals of approximately 230kt of copper in concentrate, 580koz of gold and 1.7Moz of silver per annum on average. At spot metal prices, life-of-mine NSR sales proceeds are estimated to be USD58.4bn under PEA assumption.



Given the high level of interest in this exceptional concentrate, the Board decided to select a short-list of traders based on an initial Expression of Interest from each, covering:

1. The intended market strategy for Alpala concentrate;
2. Proposed offtake volumes and tenures;

3. Comprehensive commercial terms; and

4. Ability for short and long term financial support.



In February this year, SolGold engaged with established international commodity traders to submit terms for the offtake of Alpala concentrate. To date, 10 qualifying bids have been received with more expected once worldwide restrictions due to COVID-19 are lifted. The offtake terms, though non-binding, are sufficiently detailed to give SolGold confidence that binding agreements can be reached during forthcoming negotiations.



SolGold Chief Executive Officer, Nick Mather commented: "The high quality of the concentrates and the gold rich nature is attracting significant interest from not only traditional financiers, but from traders and smelters, pointing to a strong outcome in the generation of a near term development funding package. Running the parallel processes of permitting, feasibility and financing with concentrates like SolGold has at Alpala, will, in SolGold's view, deliver a much quicker than expected development decision."



Demand for Apala concentrate expected to drive improved terms



Demand from the traders for the Alpala concentrate was significantly in excess of planned production volumes, testament to the inherent quality and value of the material.

Demand from all major Asian, European, North and South American smelters is expected to be strong, as a replacement for Freeport's gold rich Grasberg concentrate when smelting begins in 2023 at its planned Gresik smelter in Indonesia. SolGold considers that the low deleterious element content of the Alpala concentrate, and the well-balanced combination of sulphur, iron and copper in the concentrate will ensure that Alpala concentrate will be a preferred baseload for prime copper smelters with high gold recovery circuits. SolGold will be in the enviable position of choosing from a wide array of suitors for its concentrate, allowing for a competitive bidding process and geographical spread of sales.



All of the EoI submissions indicated an improvement on the assumptions made in the PEA. The most credible EoI in size, counterparty and volume represented a substantial economic improvement over PEA assumptions. The Company expects final agreed off-take terms to continue to improve. In particular, all metal payables, precious metal refining charges and payment terms are expected to be finalised on better terms than earlier conceptual assumptions.



Funding in exchange for offtake



SolGold is also pleased to have received material offers for funding in exchange for offtake from a number of traders in their recent EoI submissions. Offers included the provision of both short-term and longer-term capital with proceeds available for studies, mine construction and cost overruns as well as working capital during ramp-up.



Engagement with global copper smelters



In parallel with the EoI process, the Company has engaged directly with state-of-the-art copper smelters in Canada, China, Europe, India, Japan and Korea known to be able to process high quality concentrate. The reactions have been overwhelmingly positive and SolGold's concentrate assays which have been further confirmed by test results undertaken by smelters, evidence that Alpala's concentrate is likely to establish itself as a premier global concentrate coveted by smelters. Discussions with traders and smelters will continue, as a complementary, integral process of SolGold's overall project finance strategy. SolGold considers that the high tonnages of concentrate production and long mine life at Alpala is likely to prove attractive for smelters and traders alike wishing to secure supply.



Executive General Manager of Corporate Finance, Mr Ingo Hofmaier commented: "We are delighted with the outstanding responses received on our recent invitation to submit expression of interests from so many of the world's leading traders. Their indicative offtake terms were highly competitive and testament to the outstanding quality of the concentrate this long-life mine is expected to produce."



"We expect demand for concentrates to remain strong, with smelter expansions and new-builds in China, Indonesia and Africa likely to outpace supply. Chinese State-Owned Enterprise copper smelters are intent on decreasing the need for cathode imports and can be expected to continue the trend of building state-of-the-art, environmentally friendly, low cost smelters as demand for copper increases over time. In a post-pandemic world, copper will continue to be the metal of the future supporting growth and innovation, smart transportation and living, antibacterial materials, data-enabled healthcare initiatives and medical advances and working in a world of increasing digital collaboration and entertainment."



SolGold is now ranking and selecting a short-listed group of traders with a view to finalising offtake agreements as well as funding support. A further update will be released to the market in due course.

[shakester2] 16/4/2020 07:07

Speechless

[lowtrawler] 16/4/2020 01:05

DD, the current copper price is not relevant. It is the future copper price which determines the value of Alpala. There is no question it is viable. In terms of financing, if SOLG take it through to production there will be significant shareholder dilution which I think is what you are hinting at. I agree this would not be the best outcome for current shareholders but I believe it would still provide a return above the current share price. In reality, it is much more likely that we will be taken over.However, we should get more visibility of financing over the next few months. At that point, somebody is going to be able to say "told you so".

[ntbb] 15/4/2020 23:16

I guess bhp are idiots paying upto 45p a share

[ntbb] 15/4/2020 23:11

Lol, what about the gold

[pmount] 15/4/2020 23:00

no lending for copper mining thats for sure. Rampers here might not like to talk about the BT copper but the banks nd copper traders will. just speculate on whether it will be taken over at 3 time or 4 times the current price, always good for a ramp. thou shalt not talk about copper here no no but inventing takeovers yes yes.

[dozyduck] 15/4/2020 22:22

dear oh Dear ! Of course £150m is peanuts. That's the obvious point I was making, together with the fact no one will lend for drilling - only for part of the build cost for a fully worked out 'bankable feasibility study' (geddit ?) for a project proved to be feasible and with enough potential equity funders to match the bankers. At current copper prices, I doubt Alpala will be 'bankable' at all. Even at PEA prices the return was only 22% - which is marginal as far as bankers are concerned. So the point you seem unable to grasp is that Solg won't get any loan funding in the foreseeable future, and drilling is going to have to be funded by shareholders putting up more cash. As I said. I'd thought this board was getting sensible.

[mknight] 15/4/2020 21:42

His name says it all Ntbb .

A bounce tomorrow ?